Rolls-Royce Corporation awarded $27.9M for engine repairs, with a 75.9% prime contractor performance score

Contract Overview

Contract Amount: $27,924,638 ($27.9M)

Contractor: Rolls-Royce Corporation

Awarding Agency: Department of Defense

Start Date: 2018-04-27

End Date: 2019-04-30

Contract Duration: 368 days

Daily Burn Rate: $75.9K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: ENGINE REPAIRS

Place of Performance

Location: INDIANAPOLIS, MARION County, INDIANA, 46225

State: Indiana Government Spending

Plain-Language Summary

Department of Defense obligated $27.9 million to ROLLS-ROYCE CORPORATION for work described as: ENGINE REPAIRS Key points: 1. The contract value of $27.9 million for engine repairs appears reasonable given the specialized nature of aircraft engine maintenance. 2. Full and open competition was utilized, suggesting a competitive bidding process that should drive favorable pricing. 3. A prime contractor performance score of 75.9% indicates a generally satisfactory but not exceptional track record for this specific award. 4. The contract duration of 368 days (approximately one year) is typical for maintenance and repair services. 5. This contract falls within the Aircraft Engine and Engine Parts Manufacturing sector, a critical component of defense readiness. 6. The award was a delivery order under a larger contract, implying a structured procurement process. 7. The firm-fixed-price contract type shifts cost risk to the contractor, which is generally favorable for the government.

Value Assessment

Rating: good

The total award of $27.9 million for engine repairs is within a typical range for specialized aerospace maintenance. Benchmarking against similar engine repair contracts for naval aircraft would provide a more precise value-for-money assessment. The firm-fixed-price structure is a positive indicator for cost control. The prime contractor's performance score of 75.9% suggests a solid, though not perfect, history on this particular contract, warranting further review of any performance issues.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit bids. The number of bidders is not specified, but the use of full and open competition generally fosters a competitive environment, which is expected to lead to better pricing and terms for the government. This approach maximizes the opportunity for diverse companies to participate and for the government to select the best value.

Taxpayer Impact: Full and open competition is the most taxpayer-favorable method as it maximizes the potential for cost savings through robust price discovery and a wide range of offers.

Public Impact

The primary beneficiaries are the Department of the Navy, ensuring the operational readiness of its aircraft fleet. Services delivered include critical repairs and maintenance for aircraft engines, essential for mission capability. The geographic impact is primarily within Indiana, where the contractor is located, potentially supporting local jobs. Workforce implications include the employment of skilled technicians and engineers specializing in aerospace engine maintenance.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Prime contractor performance score of 75.9% indicates room for improvement in meeting all performance metrics.
The contract was a delivery order, suggesting it's part of a larger, potentially multi-year, procurement vehicle which may have its own risks.

Positive Signals

Firm-fixed-price contract type provides cost certainty for the government.
Full and open competition generally leads to better pricing and selection of the most capable offeror.
The contract is for essential engine repairs, directly supporting operational readiness.

Sector Analysis

This contract operates within the Aircraft Engine and Engine Parts Manufacturing sector, a highly specialized and critical industry supporting aerospace and defense. The market is characterized by high barriers to entry due to complex technology, stringent quality requirements, and significant capital investment. Major players like Rolls-Royce Corporation dominate this space. Spending in this sector is often driven by defense procurement needs and the lifecycle support of complex aviation assets.

Small Business Impact

The data indicates that small business participation was not a specific set-aside for this contract (ss: false, sb: false). While the prime contractor is a large entity, there may be subcontracting opportunities for small businesses within the supply chain for parts or specialized services. Further analysis would be needed to determine the extent of small business involvement in fulfilling this delivery order.

Oversight & Accountability

Oversight for this contract would typically be managed by the Department of the Navy contracting officers and program managers. Performance monitoring, quality assurance, and adherence to contract terms are standard oversight mechanisms. Transparency is generally maintained through contract award databases and reporting requirements. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

Aircraft Engine Maintenance
Naval Aviation Readiness
Defense Logistics Agency Contracts
Aerospace Manufacturing Support

Risk Flags

Performance Score Below 80%
Potential for Cost Overruns (despite FFP)

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $27.9 million to ROLLS-ROYCE CORPORATION. ENGINE REPAIRS

Who is the contractor on this award?

The obligated recipient is ROLLS-ROYCE CORPORATION.

Which agency awarded this contract?

Awarding agency: Department of Defense (Department of the Navy).

What is the total obligated amount?

The obligated amount is $27.9 million.

What is the period of performance?

Start: 2018-04-27. End: 2019-04-30.

What is the historical spending trend for aircraft engine repairs by the Department of the Navy over the last five years?

Analyzing historical spending trends for aircraft engine repairs by the Department of the Navy over the last five years would reveal patterns in demand, average contract values, and the prevalence of different contract types (e.g., firm-fixed-price vs. cost-plus). This data can help benchmark the current $27.9 million award against typical expenditure levels and identify any significant fluctuations that might indicate changes in fleet readiness, new aircraft introductions, or shifts in maintenance strategies. Understanding these trends provides context for assessing whether the current spending is anomalous or consistent with past investment in maintaining naval aviation capabilities.

How does the prime contractor's performance score of 75.9% compare to industry averages for similar engine repair contracts?

A prime contractor performance score of 75.9% suggests that Rolls-Royce Corporation met most, but not all, of the performance requirements for this specific contract. To assess this adequately, it needs to be compared against industry averages for similar aircraft engine repair contracts. If the average score for comparable contracts is significantly higher (e.g., above 85%), then 75.9% might be considered 'fair' or 'questionable,' indicating potential issues with delivery timeliness, quality, or adherence to specifications. Conversely, if the average is closer to 70%, then 75.9% could be viewed as 'good.' This comparison is crucial for understanding the contractor's reliability and the overall value received by the government.

What specific types of engine repairs were covered under this $27.9 million contract?

The provided data identifies the contract as being for 'ENGINE REPAIRS' but does not specify the exact nature or scope of these repairs. Understanding the specific types of repairs—whether they involve routine maintenance, overhauls, component replacements, or addressing specific technical issues—is critical for a thorough analysis. For instance, major overhauls are significantly more complex and costly than routine servicing. Knowing the specifics allows for a more accurate comparison with other contracts, assessment of the technical requirements, and evaluation of the contractor's expertise in handling the particular repair needs of the Navy's aircraft engines.

Were there any notable cost underruns or overruns associated with this contract, and what were the contributing factors?

The data provided does not include information on cost underruns or overruns for this specific contract. As it was a firm-fixed-price award, the expectation is that the contractor would absorb any cost overruns. However, contract modifications, change orders, or unforeseen technical challenges could potentially lead to adjustments. Investigating whether such modifications occurred and their financial impact would provide insight into the accuracy of the initial pricing and the contractor's ability to manage costs effectively within the agreed-upon fixed price. This information is vital for assessing the true value delivered.

What is the typical lifecycle cost for the engines serviced under this contract, and how does this repair cost fit into that lifecycle?

The lifecycle cost of aircraft engines is substantial, encompassing acquisition, operation, maintenance, and eventual disposal. This $27.9 million contract for engine repairs represents a portion of that lifecycle cost, specifically addressing the maintenance and sustainment phase. To evaluate its value, one would need to understand the expected lifespan of the engines, the frequency and cost of required repairs over their service life, and the impact of these repairs on extending operational capability. If these repairs are critical for maintaining engine performance and safety, thereby maximizing the engine's useful life and reducing the need for premature replacement, then the expenditure could represent good value within the broader lifecycle cost context.

Industry Classification

NAICS: Manufacturing › Aerospace Product and Parts Manufacturing › Aircraft Engine and Engine Parts Manufacturing

Product/Service Code: MAINT, REPAIR, REBUILD EQUIPMENT › MAINT, REPAIR, REBUILD OF EQUIPMENT

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: N0001916R0013

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Rolls-Royce Holdings PLC (UEI: 217127290)

Address: 450 S MERIDIAN ST, INDIANAPOLIS, IN, 46225

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Foreign Owned, Foreign-Owned and U.S.-Incorporated Business, Manufacturer of Goods, Not Designated a Small Business, Special Designations

Financial Breakdown

Contract Ceiling: $27,924,638

Exercised Options: $27,924,638

Current Obligation: $27,924,638

Contract Characteristics

Commercial Item: COMMERCIAL ITEM

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: N0001917D0090

IDV Type: IDC

Timeline